Sir: The Co-operative Group is correct to push on with its expansion in its core convenience operation. The Co-operatives are well positioned in a sector that continues to grow, despite the stagnation in the supermarket arena. 

At CACI we have identified 31,000 distinct Convenience Cluster locations, which can currently support one or more convenience stores. Many of these remain under-served by the sort of quality convenience stores that are being offered by the Multiples, Co-operatives and improving Symbol Groups. Our analysis reveals that 40% of the “Hot 100” highest potential locations are in London, the area correctly being prioritised by TCG.  

With consumers across the country now expecting to be able to purchase quality groceries right in their neighbourhood, as an increasingly important part of their regular shopping patterns, TCG have a great opportunity to expand. According to IGD 38% of the market is still operated by unaffiliated independents, and this is the share that the expanding groups will continue to erode. 

The Co-operative Group are correct to take the chance to find sites now, whilst their rivals in the hunt for space may be distracted by the much noted challenges faced by the main supermarket chains. There is no doubt that once the big players have stopped licking their wounds they will see that one of the few remaining areas for space growth is in the convenience sector, and TCG will see increasing competition for the best sites. 

Paul Langston - Consulting Partner, Location Strategy